World HSBC's profits plunge 45% as low interest rates and bad loans take their toll
Social businesses shut out of government support
Most 'ethical' banks don't offer bounce back loans, forcing hundreds of community-run businesses to close.It said the structure of businesses run for a social good and their choice of bank meant they missed out on help.
Most 'ethical' banks don't offer bounce back loans, forcing hundreds of community-run businesses to close.It said the structure of businesses run for a social good and their choice of bank meant they missed out on help. HONG KONG/LONDON (REUTERS) - HSBC Holdings' first-quarter profit nearly halved from a year-ago, missing estimates, after boosting provisions against bad loans as the coronavirus pandemic hits borrowers worldwide.. The bleak outlook, shared by many lenders reporting earnings this season, underscored the scale of the problems facing the sector as it grapples with corporate borrowers in crisis, plunging stock and oil prices, as well as low interest rates . HSBC ’ s new chief executive officer Noel Quinn faces additional hurdles as plans to cut costs through layoffs - part of a wider restructuring
HSBC has said it will axe around 35,000 jobs as it announced profits for 2019 fell by about a third. That has spurred the bank to target $ 4 . 5 bn (£3.5bn) of cost cuts by 2022 as part of a major restructuring. The bank's interim chief executive, Noel Quinn, said HSBC would scale back its headcount from 235,000 to about 200,000 over the next three years. Asia now accounts for about half of HSBC ' s revenue and 90% of profits . The bank is also facing the impact of the coronavirus, the UK's protracted withdrawal from the European Union and historically low interest rates around the world.
HSBC. - HSBC posted a 45% decline in profits to $US12.1 billion in 2020.
- The bank earned $US12.8 billion in Asia, but lost $US4.2 billion in Europe.
- HSBC earned lower profits in three of its four divisions.
- Visit the Business section of Insider for more stories.
HSBC posted a 14% slump in adjusted revenue last quarter, as rock-bottom interest rates weighed on its operations. Combined with a 60% surge in credit-impairment charges to $US1.2 billion due to significant economic uncertainty in the UK, the result was a 50% plunge in adjusted pre-tax profits to $US2.2 billion.
Europe's biggest bank suffered an 8% drop in adjusted revenue for the full year, and a 45% decline in adjusted pre-tax profits to $US12.1 billion. Moreover, its credit-impairment charges surged by about 226% to $US8.8 billion.
HSBC hands finance chief Stevenson £147,000 pay rise
HSBC Holdings is handing its finance chief a £147,000 pay rise after deciding to expand his responsibilities as part of the latest executive reshuffle at Europe’s biggest lender. © Associated Press A branch of HSBC bank. Pic: AP Sky News has learnt that Ewen Stevenson will see his base salary increase from £950,000 to almost £1.1m when he takes on oversight of the bank's transformation agenda and mergers and acquisitions strategy in April. HSBC ' s profits have plunged by 65 per cent in the first half of the year due to the coronavirus as Europe's largest bank plans to slash 35,000 jobs worldwide. The bank has endured a torrid year on the markets with the London listed shares falling more than 40 per cent from 595p to 342p as of June 30. Group chief executive Noel Quinn said: 'Our first half performance was impacted by the Covid-19 pandemic, falling interest rates , increased geopolitical risk and heightened levels of market volatility.'
How we are authorised HSBC UK Bank plc is established and has its registered office at 1 Centenary Square, Birmingham B1 1HQ. We are a financial services organisation and banking institution authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the To find out more about our accessible services please visit www. hsbc .co.uk/accessibility or ask at any of our branches. If you’d like this in another format such as large print, Braille or audio, please contact us. A textphone service is also available for customers with hearing and/or speech impairments.
"In 2020, our people delivered an exceptional level of support for our customers in very tough circumstances, while our strong balance sheet and liquidity gave reassurance to those who rely on us," CEO Noel Quinn said in the earnings release.
"We achieved this while delivering a solid financial performance in the context of the pandemic â€" particularly in Asia â€" and laying firm foundations for our future growth. "
Indeed, HSBC earned $US12.8 billion in adjusted pre-tax profits from its Asia operations last year, which offset a $US4.2 billion loss in Europe.
Three of the bank's four segments generated less income in 2020. Adjusted pre-tax profits tumbled 53% in the wealth and personal-banking division, 74% plunge in the commercial-banking division, and 7% in the global banking and markets segment.
HSBC shares were last down 1.7% on London's FTSE 100 index on Tuesday, ranking them among the worst performers out of the major European banks.
Meng Wanzhou’s extradition hearing enters final round in Canada .
The US has accused Huawei founder’s daughter of misleading HSBC bank about the telco’s business dealings in Iran.The daughter of Huawei founder and chief executive Ren Zhengfei faces charges in the US of bank fraud and conspiracy for the activities of a former Huawei subsidiary alleged to have violated US sanctions against Iran.
See also:
Social businesses shut out of government support 
HSBC hands finance chief Stevenson £147,000 pay rise 
HSBC sees 34% drop in profits from Covid impact 
Asian markets drop as rate fears trump Powell reassurances 
Asia markets tumble as rate hike fears take hold 
Europe less at risk of inflation and rate fears: analysts 
Congress is writing up Biden’s stimulus plan. Here’s what’s in it. 
Meng Wanzhou’s extradition hearing enters final round in Canada TOP News
TOP News
Latest News
Similar from the Web
HONG KONG/LONDON (REUTERS) - HSBC Holdings' first-quarter profit nearly halved from a year-ago, missing estimates, after boosting provisions against bad loans as the coronavirus pandemic hits borrowers worldwide.. The bleak outlook, shared by many lenders reporting earnings this season, underscored the scale of the problems facing the sector as it grapples with corporate borrowers in crisis, plunging stock and oil prices, as well as low interest rates . HSBC ’ s new chief executive officer Noel Quinn faces additional hurdles as plans to cut costs through layoffs - part of a wider restructuring www.straitstimes.com
HSBC signals mass job cuts as profits plunge - BBC NewsHSBC has said it will axe around 35,000 jobs as it announced profits for 2019 fell by about a third. That has spurred the bank to target $ 4 . 5 bn (£3.5bn) of cost cuts by 2022 as part of a major restructuring. The bank's interim chief executive, Noel Quinn, said HSBC would scale back its headcount from 235,000 to about 200,000 over the next three years. Asia now accounts for about half of HSBC ' s revenue and 90% of profits . The bank is also facing the impact of the coronavirus, the UK's protracted withdrawal from the European Union and historically low interest rates around the world. www.bbc.com
HSBC ' s profits plunge by 65% due to coronavirus | Daily Mail OnlineHSBC ' s profits have plunged by 65 per cent in the first half of the year due to the coronavirus as Europe's largest bank plans to slash 35,000 jobs worldwide. The bank has endured a torrid year on the markets with the London listed shares falling more than 40 per cent from 595p to 342p as of June 30. Group chief executive Noel Quinn said: 'Our first half performance was impacted by the Covid-19 pandemic, falling interest rates , increased geopolitical risk and heightened levels of market volatility.' www.dailymail.co.uk
T&Cs Loans 20 September 2019 | hsbc .co.ukHow we are authorised HSBC UK Bank plc is established and has its registered office at 1 Centenary Square, Birmingham B1 1HQ. We are a financial services organisation and banking institution authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the To find out more about our accessible services please visit www. hsbc .co.uk/accessibility or ask at any of our branches. If you’d like this in another format such as large print, Braille or audio, please contact us. A textphone service is also available for customers with hearing and/or speech impairments.
Bank Profits Plunge in Denmark as Negative Rates Take TollBanks in Denmark have seen their aggregate profits sink this year, according to calculations by the industry’ s main lobby group, which has repeatedly urged monetary policy makers to provide relief from long-term negative interest rates . Denmark’ s banking industry has lived with negative rates since 2012. Last week the central bank lowered its key rate to minus 0.75%, matching a crisis low . It also rebuffed industry pleas to provide relief, citing the potential adverse effects on monetary policy, tax coffers and even banks’ profitability .
RRSP Loan | HSBC Bank CanadaThe HSBC RRSP loan is subject to standard HSBC credit review and approval. 1 Prime rate is 2. 45 % as of June 20, 2020 and means the annual rate of interest HSBC Bank Canada announces from time to time as a reference rate for determining interest rates on Canadian dollar retail loans in Canada. The actual rate will vary depending on fluctuations to HSBC ' s Prime Rate . Rates are subject to change without notice. For information and to confirm most recent rates , please contact any HSBC Bank Canada branch.
Lloyds Banking Group' s profits slump 95% as the Covid-19 crisis mountsMeanwhile, HSBC has warned it might have to set aside well over £8billion for the same purpose. How has Lloyds responded to the crisis? LLoyds said it had lent around £500million to well over 3,000 small businesses as part of the Government' s Coronavirus Business Interruption Loan Scheme. 'While the bank is in a strong financial position in the immediate term, analysts will keep a close eye on the performance and quality of its loan book amid pressure to lend over the next year and beyond. 'That scrutiny, combined with an interest rate environment that challenges profitability , explains why
HSBC - Latest News on the British Bank' s local and | Daily Mail OnlineFind the latest HSBC news including business and financial information plus updates on HSBC shares prices, stocks, and more on mortgage and savings rates . Other banks have come forward in the wake of HSBC ' s statement to outline their stances on customers not wearing face coverings and encourage their customers to do so. Trade union Unite, which represents bank staff among others, is calling for the wearing face coverings to be made mandatory in all bank branches.
